I—9(MPM) Revised Syllabus |
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Time Allowed : 3 Hours | Full Marks : 100 | ||
The figures in the margin on the right side indicate full marks | |||
Answer Question No. 1 which is compulsory and any five from the rest | |||
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1. | (a) | Fill in the blanks:
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(b) | Match each expression under column I with column II:
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(c) | Which of the following statements are TRUE or FALSE:
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(d) | Define the following terms in not more than two sentences:
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2. | (a) | "Profitability alone cannot be the sole criteria for measuring the performance of any public undertaking." — Comment on this statement. | 6 |
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(b) | OPTIMAX MATUAL FUND Company has Rs. 30 lakhs available for investment in Government bonds, Blue chip stocks, Speculative stocks and Short term deposits. The annual expected return and risk factor are given below:
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Mutual Fund is required to keep at least Rs. 4 lakhs in short term deposits and not to exceed average risk factor of 42. Speculative stocks must be at most 20% of the total amount invested.
How should OPTIMAX MUTUAL FUND Company invest the funds so as to maximise its total expected annual return? Formulate this as a Linear Programming Problem. You are not required to solve the LPP. |
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3. | (a) | The following table shows all the necessary information on the availability of supply to each factory of Agro Industries Ltd., the requirement of each destination and the unit transport cost (in Rs.) from each factory to each destination:
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Since there is not enough supply, some of the demands at three destinations may not be satisfied. For the unsatisfied demands, penalty costs be Re. 1 Rs. 2 and Rs. 3 respectively.
Find the optimal allocation that minimize the transportation and penalty costs by using the Vogel's Approximation Method (VAM) |
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(b) | Arrivals of cars at Jaya Petrol Station are considered to be Poisson, with an average time of 12 minutes between one arrival and the next. The length of filling petrol is assumed to be distributed exponentially with mean of 3 minutes.
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4. | (a) | X Ltd. manufactures three components used in its finished product. The component workshop is currently unable to meet the demand for components and the possibility of sub-contracting part of the requirement is being investigated on the basis of the following data:
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You are required:
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I—9(MPM) Revised syllabus |
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(b) | Futura Ltd., a manufacturing company, having a capacity of 7 lakh units has prepared the following cost sheet:
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During the year 2006-07 the Sales Volume achieved by the company was 6 lakh units. The company has launched an expansion programme, the details of which are as under:
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After the expansion is put through, the company has two alternatives for operations:
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5. | (a) | The share of production and cost based fair price computed separately for a common product for each of the four divisions of a company are as follows:
The Company wants to fix an uniform price for the product. Advice the company. |
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(b) | Megatron Ltd. is having production shops which are cost centres. Each shop charges other shops for materials supplied and services rendered.
The shops are motivated through goal congruence, autonomy and management efforts. Megatron Ltd. is having a welding shop and painting shop. The welding shop welds annually 7,50,000 purchased items with other 15,00,000 shop made parts into 1,20,000 assemblies. The assemblies are having variable cost of Rs. 19 each and are sold in the market at Rs. 24 per assembly. Out of the total production, 80% is diverted to painting shop at same price ruling in the market. Welding shop incurs a fixed cost of Rs. 5,00,000 per annum. The painting shop is having a fixed cost of Rs. 6,00,000 and its cost of painting including transfer price from welding shop comes to Rs. 40 per unit. The painting shop sells all units transfer to it by welding shop at Rs. 50 per assembly. Requirements:
Give reasons for your recommendation. |
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I—9(MPM) Revised syllabus |
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6. | (a) | Explain the concepts of Activity Based Costing and cost drivers. | 4 | ||||||||||
(b) | Fasteners Ltd. produces and sells four products A, B, C and D. Details of the four products and relevant information are given below for week ended 28th April 2007.
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The four products are similar and are usually produced in production runs of 20 units and sold in batches of 10 units
The Production overheads during the period are as follows:
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The four products are similar and are usually produced in production runs of 20 units and sold in batches of 10 units
The Production overheads during the period are as follows: |
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The production overhead is currently absorbed by using a Machine-hour rate and the company wishes to introduce Activity Based Costing (ABC) system and has identified major cost pools for production overheads and their associated cost drivers.
Information in these activity cost pools and their drivers is given below:
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The number of requisitions raised on the stores was 20 for each product and number of orders executed was 42, each order being for a batch of 10 of a product.
Requirements:
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7. | (a) | The Chief cost Accountant of M/s XYZ Ltd. found to his surprise that the actual profit for the period ending 30th June 2006 was the same as budgeted inspite of realising 10% more than the budgeted selling prices.
The following were the results:
You are required to assist the Chief cost Accountant in preparing the necessary explanations as to why the profit remained the same despite an increase in sales. |
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(b) | X Ltd. manufactures special purpose gauges to customer specifications. The highly skilled labour force is always working to full capacity and the budget for the next year shows:
An enquiry is received from XYZ Ltd. for a gauge which would use Rs. 60 of Direct materials and 40 labour hours.
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8. | Write short notes on the following (any four)
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__________ |
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